Applying For My First Credit Card

Are You Really Ready for One?

You may be legally an adult but having a credit card is a privilege and a responsibility. You need to be matured enough to understand that you should be charging only those purchases for which you can pay for at the end of the month. When you start your credit history with positive behavior, chances are that you will be continuing in a similar fashion for the rest of your life. You should understand that it is your responsibility to pay the full amount due at the end of the month.

Problems You May Face When Trying to Apply for Your First Credit Card

The main problem you will face is if you don’t have a job and are under 21 years of age. Federal law states that a young adult under the age of 21 should have a verifiable income to be approved for a credit card. An allowance will not count. So if you don’t have a job, you will need a cosigner. Another problem that is typically faced by first-timers is that they don’t have a credit history. Banks find it easy to reject such applicants since a credit history is one of the primary factors that credit card companies study before approving an application.

Find a Job

This is very important if you are dying to get your first credit card. A steady income is something credit card companies look for whenever they issue credit cards to people. They want to be sure that you can afford to pay off the debt at the end of the month. If you can’t get a job, it’s back to finding someone to co-sign for you.

Where to Apply for Your First Credit Card

•Big credit card companies - It’s great if you are in college because big credit card companies may issue you a student credit card without much trouble.
•Your existing bank - If you already have a savings or checking account with a bank, then it should be one of the first places you should try for a credit card. A good relationship with your bank will make it easy for them to approve you for one.
•Secured credit card - A secured credit card makes a lot of sense if you are finding it difficult to get approved. You need to make a deposit to the company against the credit limit which it holds in case you fail to make regular payments. In time, the bank will most probably change it from ‘secured’ to ‘unsecured’.